AfDB and Mauritius Commercial Bank Partner to Close Trade Finance Gap

The African Development Bank Group has integrated The Mauritius Commercial Bank (MCB) into its Trade Finance Transaction Guarantee Instrument. Under this arrangement, the AfDB will provide guarantees covering up to 100% of non-payment risks on transactions involving approved African issuing banks. This mechanism is designed to bolster confidence for MCB to maintain and expand its footprint in markets where securing credit remains difficult.

This partnership addresses a persistent economic hurdle. The AfDB’s 2025 Trade Finance Report estimates the continent's unmet demand for trade funding reached between $74 billion and $92 billion in 2024. Small and medium-sized enterprises bear the brunt of this scarcity, as they frequently encounter rejected financing applications that prevent them from importing essential supplies or fulfilling cross-border orders.

Lamin Drammeh, the AfDB’s Head of Trade Finance, noted that the AAA-rated guarantee acts as a risk-mitigation tool rather than direct lending, enabling confirming banks to engage in deals they might otherwise deem too volatile. MCB CEO Thierry Hebraud stated that the agreement strengthens the bank's regional strategy, facilitating both intra-African commerce and trade with international markets. By sharing risk, the initiative seeks to unlock capital through existing banking networks, ensuring that trade finance remains a catalyst for growth rather than a barrier.